Regulator issues document outlining suitability requirements for licensing
Ontario’s Financial Services Regulatory Authority (FSRA) has issued its final guidance to ensure that current and aspiring mortgage agents and brokers are qualified to hold a licence.
The guidance is designed to help applicants, current mortgage agents, and brokers understand how their past and current conduct might affect their suitability for a licence.
It also provides a framework for mortgage brokerages and principal brokers to screen applicants and ensure compliance among their agents.
“We want to ensure that mortgage agents and brokers in Ontario are well qualified and trained before being issued a licence, especially during a time when mortgage affordability has become one of the top concerns in the province,” said Huston Loke, executive vice president of market conduct at FSRA.
FSRA's guidance applies to all licensed mortgage agents and brokers, including principal brokers, as well as applicants for these licences and mortgage brokerages.
The guidance covers FSRA's criteria for issuing licences based on educational and technical qualifications, integrity, competence, and conduct.
FSRA said that if there are reasonable grounds to believe an applicant, agent, or broker is not suitable for licensing, the regulator may take actions such as refusing, placing conditions on, revoking, or suspending a licence.
The final guidance also includes additional references to provisions in the Mortgage Brokerages, Lenders and Administrators Act, 2006. It reiterates that a brokerage is responsible for the ongoing oversight of brokers and agents.
Read more: Ontario unveils new broker guidance to promote mortgage suitability
“This is the first time we’re releasing guidance that explains how we assess if someone is suitable to hold a licence, strengthening sector practices and further protecting Ontarians working with mortgage professionals,” Loke said.
This guidance is also expected to impact consumers by ensuring higher standards in the mortgage industry. FSRA's move aims to enhance transparency in the licensing process and strengthen the overall integrity of the mortgage sector.
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